NEW ROCHELLE, NY - Who doesn’t love clementines? LGS Specialty Sales knows we Americans love this citrus treat, and the company is excited to announce the beginning of its Spanish and Moroccan clementine season. Shipments of Spanish and Moroccan citrus are expected to arrive in the U.S. beginning in November and lasting through April.
“Thanks to a strong growing season, we are expecting a large crop from both countries,” said Luke Sears, President and Founder of LGS. “This year’s increased volume of Chilean W. Murcotts has allowed us to import fruit of optimum maturity from Spain and Morocco, paving the way for a smooth transition period later in the season.”
LGS has fostered strong grower partnerships over the 28 years it has been procuring clementines, according to a company press release. This has enabled LGS to fulfill its mission to bring the highest-quality citrus to U.S. consumers year-round. Moroccan clementines—which were added to LGS’ product offerings in the early 2000s—are sourced from fertile areas like Berkane, a region in northern Morocco selected specifically for its climate and rootstock, both of which, LGS noted, are especially conducive to producing superior citrus.
“We are anticipating a smooth transition from Murcotts into Spanish and Moroccan clementines, which will be at peak flavor by the second week of December,” Sears said. “Looking ahead, we plan to transition from clementines to W. Murcotts in January, and we will have a steady volume of Moroccan Murcotts through April. Overall, we expect to have an excellent crop this year, both in yield and in flavor.”
To ensure that only the best-quality citrus is imported, LGS expanded its team to include traveling expert advisers and inspectors who work closely with growing partners year-round. During the growing season, inspectors frequently visit the groves to monitor product quality. In the off-season, advisers counsel on growing practices and advise on any changes that can be made to improve product taste at harvest, particularly with irrigation and fertigation practices.
For the latest in what's happening in the world of produce, stick with us at AndNowUKnow.
SUNBURY, PA - After an onslaught of strategic moves in the online and brick-and-mortar grocery spaces, including rolling out online grocery delivery services and a whole host of fresh store remodels, Weis Markets reported strong third quarter financial results for the thirteen-week period ended September 29, 2018.
Excitingly for produce, Weis attributes its third quarter success, particularly the 172 percent increase of its income before income taxes to $186 million, to a disciplined fresh department sell-through, as well as improved efficiencies in the stores it acquired in 2016, price optimization improvements, and improved store-level inventory management.
According to a press release, Weis Markets’ sales increased 1.7 percent to $869.1 million compared to the same period in 2017. Third quarter comparable sales also increased by 0.7 percent. In addition, the retailer’s net income increased 219.3 percent to $14.2 million compared to $4.4 million in 2017. Additional third quarter highlights included earnings per share increasing from $0.37 to $0.53 per share.
Year to Date (YTD) Results included the following for the 39-week period ended September 29, 2018:
- Sales increased 1.3 percent to $2.6 billion compared to the same period a year ago
- Comparable store sales increased 0.7 percent
- Net income increased 42.4 percent to $49.5 million
- Income before income taxes increased 19.7 percent to $67.1 million.
- Earnings per share increased $0.55 to $1.84 per share.
Throughout 2018, Weis Markets expanded its online ordering program, Weis 2 Go Online, as well as teamed up with Shipt. These strategic online grocery advancements gave the retailer’s online sales a 36 percent increase, a company press release noted.
With Weis Markets on a roll, where will the retailer set its sights next? AndNowUKnow will keep you apprised of all movement happening in grocery.
SEATTLE, WA - E-tail giant and Whole Foods Market parent Amazon has been making headlines for more than a year, now, with its ongoing efforts to find a location for a second U.S. headquarters—adding operational heft to the Pacific Northwest-based company. But a recent report by the Wall Street Journal (WSJ) suggests that Amazon is now be planning to split its HQ2 evenly between two locations—effectively adding an HQ3 to the mix.
The impetus behind the plan is reportedly the inability of Amazon to attract enough tech talent to any one location. Under its new plan, Amazon’s two new co-headquarters would split 25,000 employees between two locations in two different cities, according to the WSJ’s sources, and the Journal speculated that both headquarters would essentially be offices a fraction of the size of Amazon’s current 45,000-worker strong Seattle base.
The company is reportedly in talks with several cities, but has yet to make a final decision as to its two new locations. A separate WSJ report just a week prior suggested that the company was in late-stage negotiations with a number of municipalities including Crystal City, Virginia, Dallas, and New York City.
The WSJ’s sources said that Amazon’s decision and subsequent announcement could come as early as next week. AndNowUKnow will continue to report with updates as they occur.
HOUSTON, TX - Foodservice distributor Sysco Corporation announced financial results for its first quarter fiscal 2019. The company reported robust top-line numbers—but also noted the persistently costly effects of increased transportation costs on the company’s finances.
“Our top-line results for the first quarter were solid, particularly in our U.S. Foodservice segment,” said Tom Bené, President and CEO. “We continue to see expense challenges in the warehouse and transportation areas of our supply chain, which we anticipate will persist. We remain focused on the execution of our strategic priorities, which we believe will serve as the roadmap for additional growth and value creation.”
Highlights from the 13-week period ending September 29, 2018 included:
- Sales increased 3.9% to $15.2 billion
- Gross profit increased 3.9% to $2.9 billion; gross margin increased 2 basis points
- Operating income increased 1.4% to $628.1 million; adjusted operating income increased 5.1% to $691.7 million
- EPS increased $0.12 to $0.81; adjusted EPS increased $0.17 to $0.91
- The company noted shipping and transportation challenges contributed to nearly static gross profits, a gross margin decrease of 11 basis points, and increased operating expenses of $10.4 million, up 1.9% over last year.
Despite solid top-line results, Sysco’s failure to hit financial targets sent stocks sliding more that 7% in pre-market trading, according to the Houston Chronicle.
To read more about Sysco's Q1 2019, see the company's earnings release in its entirety here.
Will supply chain issues continue to hamper Sysco and other foodservice providers? AndNowUKnow will continue to report with updates.
SANDPOINT, ID - Employee-owned refrigerated salad dressing maker Litehouse announced that Jim Frank, the company’s current President and CEO will be retiring from the company.
Frank will be replaced as President on an interim basis by Executive Vice President and CFO Kelly Prior as the company sets out on its CEO search.
“I am exceedingly grateful for the opportunity to lead such an amazing organization and I want to thank all of the Employee Owners for their dedication in helping to make Litehouse the company it is today. I am excited to watch as Litehouse continues to grow into one of the most trusted names in the CPG industry,” said Jim Frank, in a press release.
Frank first joined Litehouse in 2006 as head of the company’s sales and marketing operations. Since 2011, Frank led the organization as President and CEO. During his seven years as CEO, the company noted, Frank led the company with fervor, leading the organization to phenomenal growth across its three channels of business; retail, foodservice, and value-added.
“We cannot thank Jim enough for the dedication, passion, enthusiasm and leadership he has brought to Litehouse. Jim’s impact and contributions have been instrumental to the company’s success,” added the company’s Board of Directors.
Litehouse noted, in its press release, that it will maintain its focus on continuing to be a leader in the ever evolving CPG space; bringing innovative products, quality excellence, and best-in-class service to its business partners and customers as it searches for a new chief. The company noted that it will continue to make strategic investments to support the needs of customers across all of its business channels, positioning itself for continued future growth.
For more fresh-focused news, keep reading AndNowUKnow.
MISSION, TX - The fifth annual Viva Fresh Produce Expo, hosted by the Texas International Produce Association (TIPA), is officially open for retail, foodservice, and attendee registration! Held April 25-27, 2019, at the JW Marriot Resort & Spa in San Antonio, the 2019 show is expected to prove everything is truly bigger in Texas, with bigger and better displays, flavors, and an exciting show format.
“We’ve been determined to create a more intimate and relaxed trade show experience which is why we have limited the Expo to 168 booths,” said Dante Galeazzi, President & CEO of Texas International Produce Association. “The Expo has been described by buyers as being ‘more manageable,’ providing access to regional suppliers and growers often not able to exhibit at larger industry Expos, thus expanding vendor options.”
Viva Fresh first began in 2015 as a small regional tradeshow with the goal of showcasing the importance of the Rio Grande Valley as an emerging trade corridor and production zone, according to a press release. Year after year since its inception, the show has drawn sold-out crowds, with buyer attendance alone increasing by over 110 percent.
The upcoming show will include education program sessions in an interactive, engaging format that will cover a wide-range of topics impacting the region and the produce industry as a whole. 2019 will also welcome back the Gateway to Innovation Awards Showcase, which recognizes new products and innovation throughout the Tex-Mex corridor. Throughout the show, chef-inspired dishes featuring produce and flavors from Texas will also be served.
Today, Viva Fresh Expo is focused on connecting this rapidly growing corridor to more retail and foodservice buyers—a key reason why the majority of exhibitors at this show are grower/shippers from Texas and Mexico.
“This Tex-Mex corridor has grown to become one of the most promising and important regions for fresh produce year-round,” said Tony Fisher, Director of Sourcing for Walmart. “Viva Fresh offers a great opportunity to connect, learn, and gain an inside perspective on companies that make this region so successful, which is why I look forward to attending every year.”
Texas is not only a one-stop shop for produce sources throughout North America, it is also a region boasting more than 60 different commodities and almost $1 billion of fresh fruits and vegetables grown within its borders. Since 2007, fruit and vegetable imports coming through Texas have grown a staggering 107 percent, with reports citing more than half of all U.S. produce imports from Mexico are expected to travel through Texas by 2025.
For more information on this flourishing region or to register online for this must-attend event, visit www.VivaFreshExpo.com. Registration, airfare, and hotel expenses are complimentary for qualifying retail and foodservice companies.
To stay in-the-know on the latest produce shows, expos, and exciting events, keep following AndNowUKnow.
YUMA, AZ - Shortages in agricultural labor are nothing new. The increasing scarcity of the stuff, though, is increasingly shaping the bottom lines of agricultural companies and the availability of fresh food to shoppers throughout North America.
Thankfully, there are options for agribusiness companies and aspiring farmworkers looking to provide produce and labor, respectively, to the market.
I recently had an opportunity to talk to Jesse Duron, CEO of CITA (Centro Independiente de Trabajadores Agrícolas/Independent Agricultural Worker Center). The son of CITA Founder Janine Duron, Jesse filled me in on the bi-national agricultural workforce development program’s operations, its aims, and the ways in which it provides benefits to laborers, consumers, and operators.
“Original funding was provided by a startup grant donated through Catholic Relief Services of Mexico,” Jesse explained to me. “CITA was organized as a not-for-profit organization in the U.S. and Mexico with the mission of helping employers and their workers prosper together. “The pilot program used our knowledge of the issues inherently present in agricultural labor to promote a non-adversarial environment for change.”
Jesse continued:
“The H-2A program gained popularity as a farming necessity, not so much as a choice. Wariness—of the cost of bringing, housing, and transporting seasonal labor, of the government rules and restrictions involved, and the uncertainty of the quality of workers that would come—kept most farmers from engaging,” he said. “CITA evolved into CITA H-2A Services & Resource Center to better serve employers needing to help restore their part of America’s agricultural workforce in every sense. First, to help employers provide the best work environment possible, to navigate the complicated H-2A program, and to help resolve labor issues that may arise. Secondly, to serve America’s domestic workforce first, then supplement it with seasonal willing and able workers.”
Through CITA’s Worker Care Center, the company is able to offer resources to working families in the U.S. and Mexico.
“As a one-stop program operating in Mexico and the U.S., CITA provides a secure and guaranteed usage of the H-2A program, eliminating the risk of using fraudulent or abusive recruiters in other countries,” Jesse explained. “Information, employer assistance with the H-2A petition process, worker education and assistance are our primary activities. We stand by our 100 percent refund guarantee of petition approval with every client. All for the benefit of workers, employers, and the governments who serve us all.”
And, Jesse noted, the advantage enjoyed by CITA’s employers and workers extends beyond the care and training of accepted candidates to an H-2A contract in the U.S. CITA is also involved in helping thousands of candidates who are not selected as candidates for H-2A placement meet basic needs such as food, housing, and clothing. CITA H-2A also specializes in correcting previously denied employer petitions of other H-2A service providers—running alongside businesses needing to restore their workforce for many years to come.
“Agricultural workforce stabilization has never been more urgent or possible than it is today,” noted Jesse. “Agricultural labor shortages are here to stay, especially as technology advances and immigration laws and parameters affect the estimated 80 percent undocumented workforce. Changes are coming to allow dairies, logging operations, and packing houses access to temporary labor that can return trained and very willing workers to do the work most Americans cannot or will not do. We encourage all employers to renew their understanding of this practical, very manageable option.”
For more information, interested parties can visit CITA’s website.
MINNEAPOLIS, MN - At the end of October, UNFI completed its $2.9 billion acquisition of SuperValu, but it has not yet solved a problem that plagued SuperValu for years. The problem, of course, revolves around the fate of Cub Foods, for the retailer remains buyer-less.
Anne Dament, Executive Vice President, Retail, Marketing, and Private Brands, SuperValu, runs the Cub Foods Chain, and she told The Star Tribune that there were no plans to close Cub Foods, but that the grocery chain was hoping to find a single-buyer.
The Minneapolis/St.Paul Business Journal reported that Cub Foods may have better luck in the form of a local buyer looking to expand in the area. One such option would be Hy-Vee, which the news source reported has already taken over a Cub Foods location in Plymouth. However, Hy-Vee might not be interested.
“We’re going to stay on a steady growth plan that’s manageable,” Hy-Vee CEO Randy Edeker told The Star Tribune.
So, what’s next for Cub Foods? Rumors surfaced in August that Kroger might be a potential buyer, with analysts citing the strategic value of such an acquisition. Whether or not Kroger will snatch up Cub Foods remains to be seen, and we here at ANUK will continue to report the latest.
BIRMINGHAM, AL - Harris Teeter is expanding its delivery reach through partner Shipt, announcing several new markets, as well as an expansion of existing markets, for the service this month.
"Harris Teeter strives to create an incredible place to shop, and with partners like Shipt, we can not only expand our delivery options, but also demonstrate our relentless commitment to improving the overall grocery shopping experience," said Danna Robinson, Communication Manager for Harris Teeter. "We look forward to continuing to test and learn through our partnership with Shipt."
Spanning six markets in three states, the areas that will see a boost or new options for grocery delivery from one of the South Atlantic’s most beloved retailers include:
- Millsboro, Delaware
- Selbyville, Delaware
- Baltimore, Maryland
- St. Mary’s Peninsula, Maryland
- Charlottesville, Virginia
- Hampton Roads, Virginia
- Washington D.C.
The move was made official last week, November 1, bringing Shipt and Harris Teeter’s partnership to 12 markets, with additional expansions planned for the Southeast region this fall.
Following this expansion, Shipt and Harris Teeter will provide more than 2.5 million households with access to delivery of their favorite Harris Teeter products in as soon as one hour, according to a press release.
“Harris Teeter offers quality produce and everyday essentials at affordable prices, complementing Shipt’s model of hospitality and accessibility––something our members notice and appreciate,” said Bill Smith, Founder and CEO of Shipt, of one of the company’s first retail partners. “We value our long standing partnership with Harris Teeter, and look forward to continuing to bring beloved Harris Teeter products to the doorsteps of our members at the press of a button.”
The two launched their delivery duo in early 2016 in The Triad, just two years after Shipt was founded in Birmingham, Alabama.
AndNowUKnow will continue to follow this and other expanding partnerships that change up the reach of retailers in the U.S. and beyond.
MCLEAN, VA - Gladstone Land has announced a new acquisition in Madera County, California, picking up a 951-acre farm for a cool $23 million. The orchard is comprised of 715 acres of fig trees and 224 acres of pistachio trees, approximately, all of which are in mature production.
“We are excited to be adding this great property in Madera County, California, to our portfolio,” said Bill Reiman, Managing Director. “Pistachios have been a focus of ours for a while, and we felt this was a great opportunity to add another specialty crop to the mix with figs. In this era of healthy eating and living, the demand for figs has been increasing, and the crop profile fits with our vision of owning land growing fresh produce and nuts.”
As part of the acquisition, Gladstone Land also entered into an 8-year, triple-net lease with The Specialty Crop Company, Inc., a major grower of fresh and dried figs. Reiman noted his excitement about adding the new tenant, remarking on its great reputation locally.
“This acquisition allows us to enter into a new crop type and further diversify our portfolio,” said David Gladstone, President and CEO. “Both fig and pistachio trees can potentially remain in peak production for hundreds of years, and most of the crop is consumed domestically within the United States. We are continuing to execute our plan of building a diversified farmland portfolio consisting of the highest quality of farms. We hope that the additional income earned from this farm will allow us to continue our goal of frequently increasing the common dividend.”
For more on major acquisitions within the produce space, keep returning for the news on AndNowUKnow.